COW 2009 Council Audit Presentation

60203

Description

GF&H: TRUST…VISION…LEADERSHIP…INNOVATION…VALUECITY OF WOODRUFFFinancial Audit Presentationfor theYear EndedJune 30, 2009www.gfhllp.com August, 2009 864-232-5204City of Woodruff –Financial Audit - June 30, 2009• Financial Statements are the responsibility of the City• Our responsibility: to express an opinion on the Financial Statements• Independence • Materiality• Unqualified opinion - reasonable assurance that financial statements are materially correct– This is the best opinion the City can receiveCity of Woodruff –Financial Audit - June 30, 2009General Fund• Total Fund Balance decreased 1,400by $193k to $1,084k1,200• Unreserved fund balance of 1,000$1,077k represents 49% of 800operating expenditures 600• Still owe $145k on GO bonds 400issued in 2003 to pay 200operating bills.0• Therefore, operating fund 2007 2008 2009balance is $932k (excluding the GO bonds)– Represents 42% of operating General Fund Balanceexpenditures(thousands)City of Woodruff –Financial Audit - June 30, 2009Why is a Healthy Fund Balance Important?• Cash flow until property taxes are received• Emergencies and revenue shortfalls• Savings for major planned expenditures• Flexibility for discretionary funding needs• Potential for better interest rates for debt issuances (lower interest rate)City of Woodruff –Financial Audit - June 30, 2009General Fund Revenues• $549k decrease (22%) from the prior year to $1,975k2,500– Grant revenues ...

Informations

• Publié par: Ermey
• Nombre de lectures: 7
• Langue: English

Extrait

GF&H: TRUST…VISION…LEADERSHIP…INNOVATION…VALUE

www.gfhllp.com

CITY OF WOODRUFF

Financial Audit Presentation for the Year Ended June 30, 2009

August, 2009

864-232-5204

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City of Woodruff – Financial Audit - June 30, 2009

Financial Statements are the responsibility of the City Our responsibility: to express an opinion on the Financial Statements Independence Materiality Unqualified opinion - reasonable assurance that financial statements are materially correct – This is the best opinion the City can receive

City of Woodruff – Financial Audit - June 30, 2009

General Fund • Total Fund Balance decreased by $193k to $1,084k • Unreserved fund balance of $1,077k represents 49% of operating expenditures • Still owe $145k on GO bonds issued in 2003 to pay operating bills. •T ba h l erefore,  $ opera k t   i ( n e g fund  ance is 932 xcluding the GO bonds) – Represents 42% of operating expenditures

1,400 1,200 1,000 800 600 400 200 0 2007 2008 2009

General Fund Balance

City of Woodruff – Financial Audit - June 30, 2009

Why is a Healthy Fund Balance Important?

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Cash flow until property taxes are received

Emergencies and revenue shortfalls

Savings for major planned expenditures

Flexibility for discretionary funding needs

Potential for better interest rates for debt issuances (lower interest rate)

City of Woodruff – Financial Audit - June 30, 2009

General Fund Revenues • $549k decrease (22%) from the prior year to $1,975k – Grant revenues decreased $469k – no CDBG or equipment grants in 2009 – Business Licenses decreased $35k – primarily due to a large retail company closing in current year – Property taxes decreased $25k – reduction in millage from 116.0 to 97.2 mills, partially offset by an increase in assessed values due to reassessment – Investment income decreased $22k due to much lower interest rates – Net increase in all other revenues of $2k

2,500 2,000 1,500 1,000 500 0 2007 2008 2009

General Fund Revenues

City of Woodruff – Financial Audit - June 30, 2009

General Fund Expenditures • $425k decrease (16%) from the prior year to $2,208k – Capital outlay decreased by $318k as there were minimal funds from grants and there were no proceeds from issuance of debt in the current year – Non-departmental expenditures decreased by $209k due to no CDBG grant expenditures in the current year – Police department increased $43k primarily due to an increase in salaries (overtime pay) during the current year – Fire department increased $69k due to higher maintenance and equipment costs – Net decrease in all other expenditures of $10k

2,750 2,250 1,750 1,250 750 250 (250) 2007 2008 2009

General Fund Expenditures

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City of Woodruff – General Fund Budget / Actual Comparison – June 30, 2009

Revenues – Actual of $1,975k were $53k under budget – Property taxes – under budget by $87k due to the reduction in millage which was only partially offset by the increase in assessed values – All other revenues in total were over budget by $34k Expenditures – Actual of $2,208k were $140k over budget – Police – over budget by$125k due to higher salaries (overtime pay) – Fire – over budget by$50k due to higher maintenance and equipment costs – Street – over budget by $47kdue to higher repairs – Capital outlay – under budget by $74k – minimal expenditures during 2009 – All other departments in total were under budget by $8k

2,500 2,000 1,500 1,000 500 0 Revenues

Expend.

Budget Actual

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City of Woodruff – Tax Increment Financing District – June 30, 2009

Property tax revenues of $330k were $166k higher than last year as the assessed values more than doubled - several properties in the TIF District came on line during the current year Expenditures of $105k were $23k higher than last year but were $64k less than budget – Debt service of $81k was the primary expenditure during 2009 Fund balance was $605k at 6/30/09 - an increase of $225k from the prior year

350 300 250 200 150 100 50 0

2008

2009

Revenues Expenditures

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City of Woodruff – Hospitality Tax Fund – June 30, 2009

Revenues of $122k were $21k lower than the prior year – PARD grant of $25k in the prior year, no grants in the current year Expenditures of $103k for the current year: – $40k for the Timrod Library – $37k for the PRT Committee – $13k for the auditorium – $13k for all other expenditures Fund balance was $96k at 6/30/09 - an increase of $19k from the prior year

160 140 120 100 80 60 40 20 0

2008

2009

Revenues Expenditures

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City of Woodruff – Sewer Fund – June 30, 2009

Revenues of $397k were $10k lower (2.5%) than prior year – CDBG grant was completed in the prior year – revenues of $16k in PY, none in CY Expenses of $486k were $30k lower (5.8%) than prior year – CDBG grant was completed in the prior year - expenses of $16k in PY, none in CY – No increase in thesludge accrual deemed necessary in the current year, compared to $19k in the prior year Operating loss of $89k (which includes depreciation expense of $103k) vs. $110k loss in the prior year – Decrease of $21k compared to PY, due primarily to lower expenses as explained above

800 700 600 500 400 300 200 100 0 2007

2008

2009

Revenues Expenses

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City of Woodruff – Sewer Fund – June 30, 2009

Sewer fund net assets decreased $89k to $2.341 million $2.205 million relates to capital assets, net of related debt $51k is restricted for debt service $85k is unrestricted for operations (18% of 2009 operating expenses) Important Note: Unrestricted net assets decreased by $26k – third year in a row that unrestricted net assets has decreased

2.55 2.50 2.45 2.40 2.35 2.30 2.25 2.20 2007 2008 2009

Sewer fund net assets